EUR/USD is currently trading with a bearish bias. During the previous trading day, Euro traded long and ended up finding a resistant just below 1.098. Assuming 1.098 to be the end of wave (4), the current downward movement is the unfolding of wave(5). We expect the price to continue short with an ultimate target at the lower supportive trend line. This pair should be trade alongside other positively correlated pairs such as EUR/AUD, EUR/CAD, EUR/GBP and USD/CAD. These pairs have a strong positive correlation of up to +0.91 and are thus expected to have a similar price action. Only buy or sell Euro if all the other positively correlated pairs are giving the same signal.
Remain Short with an ultimate target at lower supportive trend line.
Margin Trading in the Forex market contains risks and can cause in significant financial losses. Before deciding to trade in the foreign exchange market, make sure that you understand the risks according to your financial experience and knowledge.